'Concerns over irregularities'

A Lancashire County Council (LCC) spokesman said: "In the light of external legal advice, a number of issues arising from the recent disciplinary investigation into the conduct of a senior officer have now been referred to Lancashire Constabulary.

"The council will not be commenting further at this time."

Det Ch Supt Clive Tattum said: "The Constabulary has received a referral from Lancashire County Council which outlines concerns in relation to a number of financial irregularities.

Analysis

By Arif AnsariPolitical editor, North West

One inquiry has been exchanged for another. Lancashire County Council accepted Phil Halsall's resignation and dropped the official disciplinary inquiry being conducted by a barrister.

But the council has now passed its concerns to Lancashire Constabulary.

The allegations appear to stem from the decision to create One Connect Ltd (OCL), a joint venture between the council and BT to run some services.

In particular, concern has focused around the decision to award a contract to OCL to run the county council's fleet of vehicles, a contract cancelled by the incoming Labour administration.

Another issue is the payment of more than £500,000 in bonuses to the former chief executive of OCL, David McElhinney, who remains in charge of a similar venture between BT and Liverpool City Council.